After Central Bank in Argentina having limited the buying and selling of dollars in the last month, now, the country will start to impose tax regulations on payment platforms like Mercado Pago and Todo Pago.
Buenos Aires Collection Agency (ARBA) will deduct taxes on gross income of such platforms, depending on the quantity and values of transactions, according to information from news media outlet Contxto.
“The measure seeks to optimize the work of tax administration in Gross Revenue, adapting it to technological changes and new business and consumption modalities, which have generated a noticeable growth in electronic transactions,” said Gastón Fossati, director of the entity.
“The system implemented will allow more efficient control of tax evasion and avoidance on digital platforms. These services will have a similar treatment to the rest of the sectors of the economy. So, these will strengthen equity and reduce informality,” he defended.
The new regulation will stand for any digital platform, website or application that allows mobile integration with payment methods – and every platform that fits in this classification could then be taxed.